Crypto

Voyager ‘shocked, displeased, appalled’ by FTX bankruptcy as crypto lender seeks another buyer

Voyager Digital’s legal team said it was “shocked, displeased, appalled” to have to reopen the bidding process for its troubled assets following the bankruptcy of FTX during a hearing yesterday.

Voyager’s official committee of unsecured creditors announced last week that it had reopened the bidding process, saying in the press release that it had not transferred any assets to FTX US. But he noted that there is a $5 million “good faith” deposit from FTX US held in an escrow account.

“We were shocked, upset, appalled,” Joshua Sussberg said at a Voyager bankruptcy hearing on Tuesday, according to a Bloomberg report. “There will be no transaction with FTX, I think that’s pretty obvious.”

Without the bankruptcy of FTX Group, Voyager Digital’s creditors would have had until November 29 to approve or oppose the restructuring plan. A hearing was also scheduled for December 8 to possibly confirm the plan.

But now, “in light of the facts and circumstances surrounding FTX’s bankruptcy, the confirmation hearing is set aside, and the related voting and objection deadline and other court-approved deadlines pursuant to the order statement of disclosure are no longer effective,” Voyager attorney Joshua Sussberg wrote in a notice filed with the court yesterday.

A statement is intended to give creditors an overview of the debtor’s situation so that they can make an informed decision on whether to approve its restructuring plan. In this case, this disclosure statement and plan would have included FTX US buying $1.4 billion worth of distressed crypto assets.

The bankrupt asset manager is now said to be considering offers from one of the losing bidders. People familiar with the matter said Financial News that Wave Financial and CrossTower have expressed interest, but neither company has confirmed.

digital travel filed for bankruptcy in July, with more than 100,000 creditors to whom it owes between 1 and 10 billion dollars. In June, the crypto asset manager revealed that it had a $661 million in exposure to the now defunct hedge fund Three Arrows Capital, which itself filed for bankruptcy 2nd of July.

In September, after refusing what he called a “low bid” from FTX, Voyager Digital accepted a $1.4 billion offer from company to acquire its distressed assets. But now that FTX itself has filed for bankruptcy, which includes West Realm Shires, the FTX company that won the auction, it can no longer close the deal.

FTX experienced a bank run last week after a report revealed how much of the FTX token, or FTT, its sister company Alameda Research had on its balance sheet. Once it became clear that approximately $5 billion of Alameda’s $14 billion in assets was an exchange token, there was a rush of withdrawals on the exchange that FTX did not. could not fill. FTX filed for bankruptcy on Friday.

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